Thursday, February 28, 2008

Restaurant Membership!

Eater.com has a story about the Riverdale Garden trying to raise $250,000 by selling free diners for a year for $5,000.

“Approximately $100,000 of the money will go to the landlord to secure a 7 year lease and $50,000 of the money will go to the frontage of the building .......an awning and French doors ( and likely a sidewalk cafe). The other hundred thousand will be utilized for working capital. If by chance we can make a profit, profit sharing with our "investors" will be discussed."

Asking customers to finance new projects is an old tradition, however asking them to finance an existing location is fairly novel.